Key characteristics of the insurance marketec.europa.eu/.../insurers-eu/factsheet-slovakia_en.pdfSLOVAKIA – Key characteristics of the insurance market April 2019 I 5 Based upon

1 Introduction ................................................................................................. 2

1.1 General ..................................................................................................... 2 1.2 Balance sheet ............................................................................................ 2 1.3 Solvency II ratios ....................................................................................... 3

2 Investments, deposits, cash and cash equivalents ....................................... 4

2.1 Scope ....................................................................................................... 4 2.2 Asset exposure .......................................................................................... 5 2.3 Equity exposure ......................................................................................... 7

3 Index-linked and unit-linked investments .................................................. 10

3.1 Scope ..................................................................................................... 10 3.2 Asset exposure ........................................................................................ 10 3.3 Equity exposure ....................................................................................... 11

4 Insurance products .................................................................................... 13

4.1 Overview ................................................................................................ 13 4.2 Life insurance products ............................................................................. 14 4.3 Non-Life insurance products ...................................................................... 15 4.4 Average duration ..................................................................................... 16

5 Accounting & Tax framework ..................................................................... 17

5.1 Accounting framework .............................................................................. 17 5.2 Tax framework ........................................................................................ 17

6 Historical data ............................................................................................ 19

6.1 Index-linked and unit-linked investments in comparison to total assets .......... 19 6.2 Solvency II – excluding index-linked and unit-linked investments .................. 20 6.3 Solvency I – excluding index-linked and unit-linked assets ............................ 21 6.4 European Central Bank – including index-linked and unit-linked assets ........... 22 6.5 Trends in Equity Investments .................................................................... 25

SLOVAKIA Key characteristics of the insurance market

European Commission - Study on the drivers of investments in equity by insurers and pension funds

SLOVAKIA – Key characteristics of the insurance market April 2019 I 2

1 Introduction

1.1 General

At the end of 2017 (2017 Q4), 15 insurance companies 1 in Slovakia submitted their

Solvency II related reporting package to the Slovak National Supervisory Authority (NSA).

These companies accounted for 0,059% of Total assets of insurance undertakings operating

within the European Union (EU).

Table 1 depicts the number of Solvency II reporting submissions in Slovakia by insurance

activities and the importance of the country within the EU, based on Total assets.

Table 1 - Insurance reporting submissions

Insurance reporting submissions #

Life undertakings 3

Non-Life undertakings 0

Reinsurance undertakings 0

Composite undertakings 12

Total 15

Total assets SK / Total assets EU % 0,059%

Ranking SK based on Total assets EU 21

Source: EIOPA Solvency II statistics and Deloitte-CEPS analysis

1.2 Balance sheet

At the end of 2017 (2017 Q4), Slovakia was the number 21 country in the EU insurance

market in terms of assets held with an amount of 6 614 million EUR reported under

Solvency II rules.

With regards to the Assets held for index-linked and unit-linked contracts, Slovakia ranked

number 21 in terms of absolute amount with 1 252 million EUR invested in this category.

However, with 8,9% of Total assets of this category, Slovakia was below the EU average,

i.e. 24,3% in terms of Total assets.

In terms of technical provisions, 35,7% of the total balance sheet relates to the life business

(i.e. non index-linked and unit-linked business), while 13,0% represented non-life

obligations.

Table 2 - Solvency II balance sheet (S.02.01) and EU comparison (solo)

in Mio EUR SK EU

Amount Rank % % Avg Min Max StD

Investments, deposits, cash and cash equivalents 4 953 20 74,9% 67,8% 67,3% 22,6% 90,1% 17,2%

Assets held for index-linked and unit-linked contracts 1 252 21 18,9% 24,2% 24,3% 2,5% 59,3% 16,2%

Other assets 408 23 6,2% 8,1% 8,4% 2,1% 19,5% 4,9%

Total assets 6 614 21 100,0% 100,0% 100,0% 100,0% 100,0% 0,0%

Technical provisions - life 2 358 18 35,7% 46,3% 32,2% 3,0% 64,2% 17,9%

Technical provisions - non-life 858 23 13,0% 6,6% 12,9% 2,4% 38,5% 9,1%

Technical provisions - index-linked and unit-linked 1 138 21 17,2% 25,1% 23,4% 2,4% 58,4% 16,0%

Other liabilities 696 19 10,5% 8,9% 9,0% 4,0% 21,3% 3,9%

Total liabilities 5 051 20 76,4% 86,9% 77,6% 49,1% 92,7% 11,1%

Excess of assets over liabilities 1 563 22 23,6% 13,1% 22,4% 7,3% 50,9% 11,1%

Total liabilities + Excess of assets over

liabilities 6 614 21 100,0% 100,0% 100,0% 100,0% 100,0% 0,0%


1 In the report, the term ‘insurance companies’ indicates both direct insurance and reinsurance companies. The insurance market

therefore also refers to insurers and reinsurers.



The balance sheet item Investments, deposits, cash and cash equivalents will be further

detailed in section 2, while section 3 will focus on Assets held for index-linked and unit-

linked contracts.

1.3 Solvency II ratios

At the end of 2017 (2017 Q4), the Slovak insurance market as a whole had available own

funds that were more than double the Solvency Capital Requirement (SCR) levels required

by the European Solvency II Directive. The reported SCR ratio amounted to 201% with

long-term guarantee (LTG) and transitional measures and is significantly below the EU,

which amounted to 237% at year-end 2017. Out of the 28 EU Member States, Slovakia is

ranked at the 18th position in terms of the reported SCR ratios.

Table 3 - Solvency II own funds and SCR (S.23.01) and EU comparison (solo)

in Mio EUR SK EU

Amount Rank % Avg Min Max StD

Total available own funds to meet the SCR 1 341 24 - - - - -

SCR 667 21 - - - - -

Surplus available own funds 675 24 - - - - -

Ratio of Eligible own funds to SCR 201% 18 237% 225% 135% 361% 52%

Ratio of Eligible own funds to SCR (10th percentile) 141% 10 136% 138% 110% 193% 19%





Ratio of Eligible own funds to MCR 519% 19 640% 613% 282% 933% 170%

Source: EIOPA statistics and Deloitte-CEPS analysis

EIOPA’s report on long-term guarantees measures and measures on equity risk published

on 18 December 2018 mentions the average impact of the use of LTG and transitional

measures. According to that report, at year-end 2017, Slovak participants reported an SCR

ratio of 196% including the application of LTGs and transitionals. Removing the measures

caused a negligible decrease of the SCR ratio to 195%.2

2 https://eiopa.europa.eu/Publications/Reports/2018-12-18%20_LTG%20AnnualReport2018.pdf



2 Investments, deposits, cash and cash equivalents

2.1 Scope

The asset allocation of Slovak insurance undertakings is mainly analysed through the

reported Solvency II Exposure List (S.06.02). The classification of the Solvency II Balance

Sheet (S.02.01) follows the legal nature of the assets in terms of classification, which can

differ, from the exposures reporting.

Based upon the comparative view below, we note that amounts reported in the Solvency

II Exposure List (S.06.02) and Solvency II Balance Sheet (S.02.01) differ3 very slightly. In

terms of allocation in percentage, we note a small shift from Deposits towards Cash and

cash equivalents, when going from Solvency II Balance Sheet to the Exposure list.

Table 4 - Solvency II balance sheet (S.02.01) and Solvency I exposure list (S.06.02) comparison

in number Exposure list SK Solvency II balance sheet SK Difference

# % # % #

Life undertakings 3 20,0% 3 20,0% 0

Non-Life undertakings 0 0,0% 0 0,0% 0

Reinsurance undertakings 0 0,0% 0 0,0% 0

Undertakings pursuing both life and non-life insurance activity 12 80,0% 12 80,0% 0

Total 15 100,0% 15 100,0% 0

in Mio EUR Exposure list SK Solvency II balance sheet SK Difference

Amount % Amount % %

Holdings in related undertakings, incl. participations and equities 201 4,1% 200 4,0% 0,0%

Holdings in related undertakings, including participations n/a n/a 197 4,0% n/a

Equities n/a n/a 3 0,1% n/a

Equities - listed n/a n/a 2 0,0% n/a

Equities - unlisted n/a n/a 2 0,0% n/a

Collective Investments Undertakings 306 6,2% 306 6,2% 0,0%

Bonds 3 889 78,5% 3 889 78,5% 0,0%

Loans and mortgages 64 1,3% 64 1,3% 0,0%

Property 213 4,3% 213 4,3% 0,0%

Deposits 85 1,7% 88 1,8% -0,1%

Cash and cash equivalents 197 4,0% 194 3,9% 0,1%

Other investments 0 0,0% 0 0,0% 0,0%

Total 4 954 100,0% 4 953 100,0% 0,0%


2.1.1 Listed and unlisted equity

The distinction between listed and unlisted equity is made based upon the reported

Solvency II Balance Sheet (S.02.01). Table 5 compares the listed and unlisted equity,

whereby Holdings in related undertakings (including participations) are excluded.

Table 5 - Listed and unlisted equity exposure based upon Solvency II balance sheet (S.02.01)

in Mio EUR SK EU


Equities - listed 2 26 54,5% 83,7% 75,0% 12,8% 99,6% 21,1%

Equities - unlisted 2 26 45,5% 16,3% 25,0% 0,4% 87,0% 21,1%

Total equities 3 26 100,0% 100,0% 100,0% 100,0% 100,0% 0,0%


3 Some companies reporting under Solvency II are exempted from reporting the Solvency II Exposure List. The decision to exempt

certain companies from particular reporting obligations lies with individual National Competent Authorities.



Based upon the quarterly reporting as of Q4 2017, Slovak insurers invested 54,5% of their

directly-held equity positions in listed shares in comparison to an average of 75,0% in the

EU. With an amount of 2 million EUR, Slovakia ranked number 26 in the EU.

With an invested amount of 2 million EUR, unlisted equity constituted a significant portion

of the equity investment category of the directly-held equity investments, i.e. 45,5%. This

placed Slovakia as the number 26 in the EU.

2.2 Asset exposure

From an asset exposure perspective, the insurance market in Slovakia mainly invested in

Government bonds and Corporate bonds (in total 78,3% of Total Investments, deposits,

cash and cash equivalents), Collective Investment Undertakings (6,2%), and Property

(4,3%).

Within the bond categories, the insurance market was not equally exposed to government

securities (47,0%) and corporate debt (31,3%),categories for which Slovakia ranked

number 20 and number 18 in the EU, respectively. Comparing the different assets classes,

we note that the government bonds asset class shows the highest standard deviation of

18,9%.

The category of Collective Investment Undertakings was the third most important for the

Slovak insurance market in terms of asset exposures. Within this category, the industry

was mainly exposed to Debt funds, Equity funds, and Asset allocation funds for which

Slovakia ranked respectively number 23, number 21, and number 17 in the EU.

Equity was the fifth category to which the Slovak insurers had the most exposure. Equity

of real estate related corporation constitutes 3,7% within the 4,1% of the total equity

exposure.

Table 6 - Asset exposures based upon Solvency II exposure list (S.06.02)

in Mio EUR SK EU


Equity 201 25 4,1% 12,0% 9,5% 1,1% 28,1% 6,5%

Common equity 182 24 3,7% 10,4% 7,8% 1,0% 22,5% 6,0%

Equity of real estate related corporation 19 22 0,4% 1,0% 1,1% 0,0% 4,0% 1,2%

Other equity 0 - 0,0% 0,6% 0,6% 0,0% 2,0% 0,7%

Collective Investment Undertakings 306 23 6,2% 19,2% 12,8% 1,5% 41,6% 9,3%

Equity funds 89 21 1,8% 3,2% 2,7% 0,4% 10,9% 2,4%

Private equity funds 0 - 0,0% 0,5% 0,5% 0,0% 6,9% 1,3%

Debt funds 124 23 2,5% 7,8% 5,6% 0,8% 18,0% 4,9%

Money market funds 31 19 0,6% 2,3% 1,1% 0,0% 6,3% 1,6%

Asset allocation funds 52 17 1,0% 1,1% 0,8% 0,0% 3,9% 1,0%

Real estate funds 6 19 0,1% 1,6% 0,8% 0,0% 3,3% 0,9%

Alternative funds 2 21 0,0% 0,4% 0,3% 0,0% 3,1% 0,6%

Infrastructure funds 0 - 0,0% 0,2% 0,1% 0,0% 0,9% 0,2%

Other 2 22 0,0% 2,0% 0,9% 0,0% 7,2% 1,7%

Government bonds 2 330 20 47,0% 28,7% 39,7% 10,0% 77,0% 18,9%

Corporate bonds 1 552 18 31,3% 26,9% 21,6% 1,8% 47,3% 11,2%

Structured notes 7 21 0,1% 1,3% 0,5% 0,0% 2,5% 0,6%

Collateralized securities 0 - 0,0% 0,6% 0,6% 0,0% 9,3% 1,8%

Mortgages and loans 64 21 1,3% 4,8% 3,8% 0,3% 26,3% 5,2%

Property 213 19 4,3% 2,0% 3,5% 0,8% 11,6% 2,6%

Deposits 85 23 1,7% 2,8% 3,6% 0,2% 16,6% 3,6%

Cash and cash equivalents 197 20 4,0% 1,4% 4,3% 0,5% 16,6% 3,5%

Other investments 0 - 0,0% 0,1% 0,1% 0,0% 0,9% 0,3%

Not reported 0 - 0,0% 0,0% 0,0% 0,0% 0,3% 0,1%

Total Investments, deposits, cash and

cash equivalents 4 954 20 100,0% 100,0% 100,0% 100,0% 100,0% 0,0%




2.2.1 Asset exposures between Life, Non-Life and Composite insurance

undertakings, and reinsurers

Table 7, based upon the Asset Exposure reporting (S.06.02) of Q4 2017, gives further

insight into the investment behaviour of Life, Non-Life and Composite insurance companies,

and reinsurers.

Table 7 - Asset exposure based upon Solvency II exposure list (S.06.02) for Life, Non-Life and

Composite insurance undertakings, and reinsurers

in % SK EU

Life Non-life

Composite

and reinsurance

Life Non-life

Composite

and reinsurance

Equity 17,8% - 3,1% 6,6% 18,3% 16,5%

Common equity 17,7% - 2,7% 5,0% 16,2% 14,9%

Equity of real estate related corporation 0,0% - 0,4% 1,0% 0,8% 1,2%

Other equity 0,0% - 0,0% 0,6% 1,3% 0,4%

Collective Investment Undertakings 9,5% - 5,9% 22,4% 22,3% 13,8%

Equity funds 0,0% - 1,9% 3,7% 2,9% 2,7%

Private equity funds 0,0% - 0,0% 0,5% 0,5% 0,5%

Debt funds 9,5% - 2,0% 9,7% 9,7% 4,7%

Money market funds 0,0% - 0,7% 2,8% 1,4% 2,0%

Asset allocation funds 0,0% - 1,1% 1,3% 1,2% 0,9%

Real estate funds 0,0% - 0,1% 1,6% 1,8% 1,4%

Alternative funds 0,0% - 0,0% 0,3% 0,3% 0,5%

Infrastructure funds 0,0% - 0,0% 0,2% 0,2% 0,3%

Other 0,0% - 0,0% 2,3% 4,3% 0,8%

Government bonds 55,4% - 46,5% 28,1% 19,1% 33,4%

Corporate bonds 5,7% - 33,1% 29,2% 29,3% 22,9%

Structured notes 0,0% - 0,2% 1,4% 0,6% 1,5%

Collateralized securities 0,0% - 0,0% 0,8% 0,6% 0,5%

Mortgages and loans 0,0% - 1,4% 7,4% 3,2% 2,3%

Property 0,2% - 4,6% 2,0% 2,5% 1,7%

Deposits 2,0% - 1,8% 0,8% 1,6% 5,8%

Cash and cash equivalents 9,6% - 3,5% 1,0% 2,5% 1,4%

Other investments 0,0% - 0,0% 0,2% 0,0% 0,1%

Not reported 0,0% - 0,0% 0,0% 0,0% 0,0%

Total Investments, deposits, cash and cash equivalents 100,0% - 100,0% 100,0% 100,0% 100,0%


At EU level Non-Life insurers invested a significantly higher portion of their Investments in

Equity (18,3% equity investments) in comparison to pure Life insurers (6,6% equity

investments). In Slovakia this difference was not apparent, and we note that Life insurers

invested 5 times more of their assets into this category than their composite counterparts.

As no Slovak Non-Life insurance data is available, no numbers are reported for Non-Life in

the table above.

On the other hand, at EU level, pure Life insurers and also Composite insurers allocated a

larger share of their investments to government bonds as compared to Non-Life insurers.

There is a contrast in behaviour between Slovak Life insurers and their counterpart at EU

level with regard to the corporate bonds. Slovak Life insurers reported 5,7% of their

investments in this category, in sharp contrast to the EU level which amounted to 29,2%.



2.3 Equity exposure

Based upon the information included in the Solvency II Exposure List (S.06.02) and Balance

Sheet (S.02.01), equity exposures can be calculated and presented in different ways:

Equity exposure as the sum of Equity (Common equity, Equity of real estate related

corporation and Other equity), Equity and Private equity funds, and Equity risk

included in structured notes;

Equity of real estate related corporation could be seen as a property exposure.

Therefore equity exposures are presented including and excluding Equity of real

estate related corporation;

The equity amounts of the Solvency II Exposure List does not provide further details

whether the equity exposures relate to listed or unlisted equity positions. In

addition, the Solvency II Exposure List does not mention whether the equity relates

to Holdings in related undertakings, including participations;

Therefore, the listed and unlisted share amounts reported in the Solvency II Balance

Sheet are considered and integrated as an equity exposure indicator. A rescaling is

performed in case a difference is noted between the two Solvency II information

sets (Exposure List versus Balance Sheet). The adjusted equity exposure stemming

from this analysis excludes the Equity exposure coming from Holdings in related

undertakings, including participations. These holdings can potentially be important

within insurance groups.

Table 8 - Equity exposure based upon Solvency II balance sheet (S.02.01) and Solvency II exposure list (S.06.02)

in Mio EUR SK EU


Equity 201 25 4,1% 12,0% 9,5% 1,1% 28,1% 6,5%

Common equity 182 24 3,7% 10,4% 7,8% 1,0% 22,5% 6,0%


Other equity 0 - 0,0% 0,6% 0,6% 0,0% 2,0% 0,7%

Collective Investment Undertakings - Equity funds 89 23 1,8% 3,8% 3,2% 0,4% 14,7% 3,5%

Equity funds 89 21 1,8% 3,2% 2,7% 0,4% 10,9% 2,4%


Structured notes - Equity risk 1 19 0,0% 0,2% 0,1% 0,0% 0,6% 0,1%

Total Equity exposure 292 24 5,9% 16,0% 12,7% 2,5% 37,4% 8,4%

Equity without Equity of real estate related corporation 182 24 3,7% 11,0% 8,4% 1,1% 24,1% 6,1%

Equity exposure without Equity of real estate related corporation

272 22 5,5% 15,0% 11,7% 2,4% 33,3% 7,9%

Equities market value balance sheet (rescaled to

CIC scope) 3 26 0,1% 3,6% 3,2% 0,1% 20,6% 4,0%

Equities - listed (rescaled to CIC scope) 2 26 0,0% 3,0% 2,6% 0,0% 15,4% 3,2%

Equities - unlisted (rescaled to CIC scope) 2 26 0,0% 0,6% 0,6% 0,0% 5,2% 1,0%

Equity exposure based upon (Un)Listed equities

(rescaled) 94 24 1,9% 7,6% 6,5% 1,2% 29,8% 6,7%


The observed standard deviations at EU level are relatively high given the asset allocation

in percentage between the different asset classes at EU level.

In Slovakia, we note that equity exposures coming from Collective Investment

Undertakings amount to 1,8% and are higher than the listed and unlisted equity exposures

which in total amount to 0,1%. Hereby the listed and unlisted equities in Slovakia are not

similar to the asset allocation at EU level.



2.3.1 Direct and indirect equity exposure

Table 9 - Direct and indirect equity exposure based upon Solvency II exposure list (S.06.02)

in Mio EUR SK EU


Direct equity 201 25 69,0% 75,2% 73,4% 39,2% 94,5% 15,9%

Common equity 182 24 62,4% 64,8% 59,4% 28,6% 93,3% 19,0%


Other equity 0 - 0,0% 3,9% 5,7% 0,0% 35,3% 8,8%

Indirect equity 90 21 31,0% 24,8% 26,6% 5,5% 60,8% 15,9%

Collective Investment Undertakings - Equity

funds 89 21 30,5% 23,6% 25,9% 4,6% 60,6% 15,7%

Equity funds 89 21 30,5% 20,2% 22,8% 4,6% 52,9% 13,4%





In 2017 Q4, the insurance market in Slovakia was invested twice as much in Direct equity

(69,0% of Total equity) than in Indirect equity (31,0% of Total equity).

In terms of direct equity exposure, Slovakia ranked number 24 and number 22 in the EU,

with regards respectively to the exposure amount to Common equity and Equity of real

estate related corporation.

Within the Indirect equity category, Equity funds constituted the bulk of investments with

30,5% of Total equity.

2.3.2 Equity by location

Table 10 - Equity exposure by location based upon Solvency II exposure list (S.06.02)

in Mio EUR SK

EU home EU other outside EU (1) Total

Equity 160 41 0 201

Common equity 160 22 0 182

Equity of real estate related corporation 0 19 0 19

Other 0 0 0 0

Collective Investment Undertakings - Equity funds 21 63 5 89

Equity funds 21 63 5 89

Private equity funds 0 0 0 0

Structured notes - Equity risk 0 1 0 1

Total Equity exposure 181 105 5 292

in % SK

EU home EU other outside EU (1) Total

Equity 79,5% 20,4% 0,0% 100,0%

Common equity 87,9% 12,1% 0,0% 100,0%

Equity of real estate related corporation 0,0% 99,6% 0,4% 100,0%

Other 100,0% 0,0% 0,0% 100,0%

Collective Investment Undertakings - Equity funds 23,6% 70,9% 5,5% 100,0%

Equity funds 23,6% 70,9% 5,5% 100,0%

Private equity funds - - - -

Structured notes - Equity risk 0,0% 100,0% 0,0% 100,0%

Total Equity exposure 62,1% 36,2% 1,7% 100,0%

(1) The following countries are included in the class 'outside EU': IS, LI, NO, AU, CA, JP, US, CH and countries grouped under the caption 'Rest of World'. In addition some investments are not assigned to an individual country and are also included in this class.




Based upon the Q4 2017 reporting with regards to the location of equity investments,

insurers established in Slovakia favoured domestic investments to a large extent,

dedicating to these 79,5% of their direct equity investments, and 23,6% of their indirect

investments.

Table 10 also showed that besides the home market, Slovakia insurers invested significantly

more in equity of other EU Member States than that of non-EU Member States. Czech

Republic, the Netherlands and Austria were the preferred destinations.

Table 11 - Direct equity exposure by location based upon Solvency II exposure list (S.06.02)

in Mio EUR SK

Amount %

Home country 160 79,5%

SK 160 79,5%

Top 5 countries (outside home country) 41 20,4%

CZ 39 19,4%

NL 1 0,4%

AT 1 0,3%

HU 0 0,2%

PL 0 0,1%

Home + Top 5 countries (outside home country) 201 100,0%

Total Direct equity exposure (with real estate corporation) 201 100,0%

in Mio EUR SK

Amount %

Home country 160 87,9%

SK 160 87,9%

Top 5 countries (outside home country) 22 12,1%

CZ 20 11,0%

NL 1 0,5%

AT 0 0,2%

HU 0 0,2%

PL 0 0,1%

Home + Top 5 countries (outside home country) 182 100,0%

Total Direct equity exposure (without real estate corporation) 182 100,0%




3 Index-linked and unit-linked investments

3.1 Scope

Based upon the comparative view below, we note no difference with respect to the Assets

held for index-linked and unit-linked contracts reported in the Solvency II Exposure List

(S.06.02) and Solvency II Balance Sheet (S.02.01).

Table 12 - Solvency II balance sheet (S.02.01) and Solvency II exposure list (S.06.02) comparison

in number Exposure list SK Solvency II balance sheet SK Difference

# % # % #

Life undertakings 3 20,0% 3 20,0% 0

Non-Life undertakings 0 0,0% 0 0,0% 0

Reinsurance undertakings 0 0,0% 0 0,0% 0

Undertakings pursuing both life and non-life insurance activity 12 80,0% 12 80,0% 0

Total 15 100,0% 15 100,0% 0

in Mio EUR Exposure list SK Solvency II balance sheet SK Difference

Amount % Amount % %

Assets held for index-linked and unit-linked contracts 1 252 100,0% 1 252 100,0% 0,0%


3.2 Asset exposure

Table 13 depicts a more detailed view of the Assets held for index-linked and unit-linked

contracts, based upon the Solvency II exposure list (S.06.02).

Table 13 - Asset exposure based upon Solvency II exposure list (S.06.02)

in Mio EUR SK EU


Equity 0 - 0,0% 19,3% 4,5% 0,0% 30,1% 7,1%

Common equity 0 - 0,0% 18,0% 3,9% 0,0% 28,8% 6,3%

Equity of real estate related corporation 0 - 0,0% 0,8% 0,3% 0,0% 1,5% 0,5%

Other equity 0 - 0,0% 0,4% 0,3% 0,0% 4,1% 0,9%

Collective Investment Undertakings 1 020 20 81,5% 63,2% 73,1% 30,1% 97,5% 16,3%

Equity funds 423 20 33,8% 26,5% 29,2% 11,2% 57,5% 10,5%


Debt funds 276 21 22,0% 12,1% 19,0% 4,8% 47,5% 11,4%

Money market funds 18 21 1,4% 2,2% 1,7% 0,0% 7,5% 1,8%

Asset allocation funds 178 18 14,2% 14,8% 13,1% 0,4% 30,5% 7,7%

Real estate funds 9 16 0,7% 1,4% 0,6% 0,0% 6,2% 1,2%

Alternative funds 7 24 0,6% 1,6% 2,4% 0,0% 16,3% 3,8%

Infrastructure funds 0 - 0,0% 0,0% 0,1% 0,0% 2,4% 0,5%

Other 109 16 8,7% 4,6% 6,9% 0,0% 44,3% 10,0%

Government bonds 9 23 0,7% 6,4% 6,9% 0,0% 31,4% 8,4%

Corporate bonds 130 19 10,4% 3,9% 6,0% 0,0% 22,7% 6,9%

Structured notes 84 17 6,7% 1,6% 4,1% 0,0% 18,9% 4,9%

Collateralised securities 0 - 0,0% 0,1% 0,1% 0,0% 0,9% 0,2%

Mortgages and loans 0 - 0,0% 0,2% 0,2% -3,7% 2,5% 1,0%

Property 0 - 0,0% 1,3% 0,6% 0,0% 7,6% 1,5%

Deposits 3 19 0,3% 1,2% 2,0% -0,3% 14,5% 3,3%

Cash and cash equivalents 5 23 0,4% 1,2% 2,2% 0,0% 8,5% 2,5%

Other investments 0 - 0,0% 0,4% 0,3% 0,0% 8,1% 1,5%

Not reported 0 - 0,0% 1,2% 0,1% 0,0% 2,3% 0,4%

Total Investments, deposits, cash and

cash equivalents 1 252 21 100,0% 100,0% 100,0% 100,0% 100,0% 0,0%


The Collective Investment Undertakings (81,5%) and the Corporate bonds (10,4%)

represent the most important asset classes of the index-linked and unit-linked investments.

Overall, we note a significantly different asset exposure allocation in comparison to the



asset exposure for non index-linked and unit-linked investments. Hereby we refer to section

2 for further details.

Relatively to the EU average, we observe a significant large difference between the portion

of index-linked and unit-linked related assets that were invested in Direct equity, 0,0% in

Slovakia compared to 4,5% in the EU.

3.3 Equity exposure

The Solvency II balance sheet (S.02.01) does not include a further split in different asset

classes for the Assets held for index-linked and unit-linked contracts. Hence the rescaling

exercise as presented in section 2 cannot be performed here.

Table 14 - Equity exposure based upon Solvency II exposure list (S.06.02)

in Mio EUR SK EU


Equity 0 - 0,0% 19,3% 4,5% 0,0% 30,1% 7,1%

Common equity 0 - 0,0% 18,0% 3,9% 0,0% 28,8% 6,3%


Other equity 0 - 0,0% 0,4% 0,3% 0,0% 4,1% 0,9%

Collective Investment Undertakings - Equity funds 423 20 33,8% 26,5% 29,3% 11,2% 57,5% 10,4%

Equity funds 423 20 33,8% 26,5% 29,2% 11,2% 57,5% 10,5%




Equity without Equity of real estate related corporation

0 24 0,0% 16,0% 4,2% 0,0% 29,2% 6,8%

Equity exposure without Equity of real estate

related corporation 485 20 38,7% 40,0% 36,2% 11,7% 58,6% 10,8%


In Slovakia, we note that total equity exposures related to index-linked and unit-linked

contracts (38,7%) are significantly higher in comparison to non index-linked and unit-linked

contracts (31,0%). Equity funds are the main contributors to the total equity exposures.

3.3.1 Direct and indirect equity exposure

Table 15 - Direct and indirect equity exposure based upon Solvency II exposure list (S.06.02)

in Mio EUR SK EU


Direct equity 0 - 0,0% 38,3% 11,1% 0,0% 54,2% 15,2%

Common equity 0 - 0,0% 35,4% 9,6% 0,0% 51,8% 13,2%


Other equity 0 - 0,0% 1,3% 0,8% 0,0% 9,7% 2,2%

Indirect equity 485 20 100,0% 61,7% 88,9% 45,8% 100,0% 15,2%

Collective Investment Undertakings - Equity funds

423 20 87,3% 59,1% 81,5% 45,7% 100,0% 15,5%

Equity funds 423 20 87,3% 58,6% 81,0% 44,9% 100,0% 16,0%





In 2017 Q4, Slovak insurers invested all of their Assets held for index and unit-linked

contracts in Indirect equity (100,0% of Total equity).

In terms of direct equity exposure, Slovakia does not have a ranking for Common equity

or Equity of real estate related corporation since no investments are made in this class.



Within the Indirect equity category, Equity funds constituted the bulk of investments,

amounting to 87,3% of Total equity whereas allocation to Private equity funds were

inexistent.



4 Insurance products

4.1 Overview

This section covers the most important insurance products offered in Slovakia and the

volume of the market. Data reported in this section is obtained from the National Bank of

Slovakia (NBS).4

Slovakian insurance companies, for third year in a row, recorded a fall in total gross written

premiums by 2,4% to 1 912 million EUR, in 2017. Since 2014, when premiums stood at

2 077 million EUR, the market lost nearly 8% of its income. Looking at the composition of

the income, the market is well balanced between life and non-life business. In particular,

at end-2017, 52% or 996 million EUR of total premiums were due to life insurance products,

while the remaining 48% or 916 million was disclosed in the non-life insurance group.

Graph 1 – Gross written premiums (in million EUR)

Source: NBS

4 Available at https://www.nbs.sk/en/statistics.

54% 54% 55% 57% 56%53%

49% 52%

46% 46% 45%43% 44%

47%51% 48%

0

500

1 000

1 500

2 000

2 500

2010 2011 2012 2013 2014 2015 2016 2017

Life Non-life

https://www.nbs.sk/en/statistics



4.2 Life insurance products

After losing more than 18% of its premium income between 2013-2016, life insurance

premiums grew by 3,9% in 2017. All life insurance products contributed to this increase,

as they recorded positive growth rates. Gross written premiums in classic life insurance5

raised by 0,83% to 719 million EUR, of which 70% (507 million EUR) were due to insurance

with profit participation and 30% (213 million EUR) due to other life insurance products.

Significant growth dynamics were also present in index-linked and unit-linked products,

with gross premiums accounting for 212 million EUR, up by 6,1% to 2016. Other categories

of life insurance, such as health insurance and annuities, also recorded an increase in their

premiums by 6,3% (to 62 million EUR) and 0,25% (to 2 million EUR), respectively.

Graph 2 – Gross written premiums of life insurance products (in million EUR)

Source: NBS

5 In terms of Solvency II this category includes insurance with profit participation and other life insurance.

0

100

200

300

400

500

600

2010 2011 2012 2013 2014 2015 2016 2017

Insurance with profit participation Index-linked and unit-linked Other life insurance Health insurance Annuities



4.3 Non-Life insurance products

In 2017, the non-life insurance sector decreased by 8,4% to 916 million EUR. This was

against an upward trend built since 2013 in which the market grew by 12% to an all-time

high of 1 000 million EUR. Two lines of business, motor, fire and other damage to property,

achieved more than 83% of total non-life premiums.

4.3.1 Motor

Motor related insurance premiums declined by 2,6% to 546 million EUR at the end-2017.

This amount was equally balanced between motor vehicle liability, which accounted for 30%

of total non-life income (or 275 million EUR) and other motor insurance which accounted

for another 30% (271 million EUR).

4.3.2 Fire and other damage to property

Fire and other damage to property accounted for 23,7% of non-life insurance business in

2017, with premiums down by 12,2% to 217 million EUR.

4.3.3 General liability

General liability insurance recorded a drop in its premiums by 8,4% to 67 million EUR.

Despite that, the sector was the fourth largest contributor towards non-life income, similar

to 2016.

4.3.4 Income protection

Gross written premiums for income protection insurance, slumped by 23% to 45 million

EUR, representing 5% of the non-life insurance business.

4.3.5 Other non-life

Other non-life insurance, such as credit and suretyship, legal expenses, medical expenses,

assistance and marine, aviation and transport, represented 4,5% of the non-life premiums

and stood at 41 million EUR (down by 32%) at the end-2017.

Graph 3 – % allocation of gross written premiums non-life insurance products

Note: Other non-life insurance includes credit and suretyship, legal expenses, medical expenses, assistance and marine, aviation and transport.

Source: NBS

Motor vehicle liability

30%

Other motor

30%

Fire and other damage to

property

24%

General liability

7%

Income protection

5%Other Non-Life

4%



4.4 Average duration

In 2016, EIOPA published their Insurance Stress Test Report 6, which resulted in the

following conclusions for Slovakia:

The approximate effective duration for the TP life for all lines of business reported

by the EIOPA 2016 stress test participants was not available;

The Macaulay duration for the TP life for all lines of business reported by the EIOPA

2016 stress test participants is 11,33.

In comparison, the approximate effective duration and Macaulay duration for the TP life for

all lines of business for the EU/EEA are 8,23 and 13,97, respectively.

6 EIOPA, 2016, 2016 EIOPA Insurance Stress Test Report. https://eiopa.europa.eu/publications/surveys/eiopa-bos-16-

302%20insurance%20stress%20test%202016%20report.pdf

https://eiopa.europa.eu/publications/surveys/eiopa-bos-16-302%20insurance%20stress%20test%202016%20report.pdf

https://eiopa.europa.eu/publications/surveys/eiopa-bos-16-302%20insurance%20stress%20test%202016%20report.pdf



5 Accounting & Tax framework

5.1 Accounting framework

The EU has introduced rules, as laid down in Directive 2013/34/EU, to promote the

convergence of accounting standards at global level and to ensure consistent and

comparable financial reporting across the EU. Regulation 1606/2002/EC requires all listed

companies to prepare their consolidated financial statements in accordance with a single

set of international standards, the so-called IFRS7.

1. Applicable GAAP at consolidated level: IFRS required for all companies8;

2. Applicable GAAP at statutory level: IFRS required for all public interest entities and

permitted for listed companies that are not public interest entities9;

3. Prudential regulatory framework: Solvency II for the calculation of the Solvency

Capital Requirement.

5.2 Tax framework

5.2.1 Capital gains on shares

Capital gains on the sale of shares in a resident or non-resident company by resident

corporate shareholders are exempt from tax in Slovakia if:

1. A timing requirement: the income from the sale of the participation arises no earlier

than 24 months after the acquisition date;

2. A holding requirement: the acquired participation should be at least (direct) 10% in

the registered capital;

3. A substance requirement: a taxable person carries out significant functions in the

Slovak Republic, manages and bears the risks associated with the participation

ownership and has the personnel and material equipment required to carry out such

functions.

If these conditions are not complied with, taxation will be whereby capital gains are fully

taxable at the standard corporate income tax rate: 21%.

5.2.2 Capital losses on shares

The total acquisition cost of shares and other securities are tax deductible in the tax period

when they are sold, only up to the amount of total incomes from their sale (in the case of

dealers in securities, including financial institutions, this limit does not apply).

Further, for securities traded on the market of quoted securities, capital losses are

deductible only if the acquisition price is not higher, and income from the sale is not lower,

than 10% of the average rate published by the stock exchange on the day of the

sale/purchase.

Losses incurred on derivatives are generally not deductible (in the case of banks and

insurance companies, this restriction does not apply).

7 https://ec.europa.eu/info/business-economy-euro/company-reporting-and-auditing/company-reporting/financial-reporting_en

8 https://www.ifrs.org/-/media/feature/around-the-world/jurisdiction-profiles/slovakia-ifrs-profile.pdf

9 https://www.ifrs.org/-/media/feature/around-the-world/jurisdiction-profiles/slovakia-ifrs-profile.pdf

https://ec.europa.eu/info/law/international-accounting-standards-regulation-ec-no-1606-2002_en

https://ec.europa.eu/info/business-economy-euro/company-reporting-and-auditing/company-reporting/financial-reporting_en

https://www.ifrs.org/-/media/feature/around-the-world/jurisdiction-profiles/slovakia-ifrs-profile.pdf

https://www.ifrs.org/-/media/feature/around-the-world/jurisdiction-profiles/slovakia-ifrs-profile.pdf



5.2.3 Taxation of dividends

A 100% exemption applies on dividends generated insofar they are distributed out of profits

generated as of 2004 and have not been deducted at the level of the distributing entity.

Dividends distributed out of profits generated as from 2017 and paid to an entity or

individual resident in a country that has not concluded a tax treaty with Slovakia are subject

to a 35% withholding tax (WHT). Dividends distributed by a Slovak-resident entity out of

profits generated as from 2017 to an entity resident in a country that has concluded a tax

treaty with Slovakia are exempt from withholding tax. Foreign tax paid may be credited

against Slovakian tax on the same profits, but the credit is limited to the amount of Slovak

tax payable on the foreign income under an applicable tax treaty. Some of Slovakia’s

treaties eliminate double taxation by the exemption method, meaning that income taxed

abroad is excluded from Slovak taxation.



6 Historical data The following section contains historical overviews of Solvency I, Solvency II and ECB data

in order to provide insights on possible short and long-term trends.

6.1 Index-linked and unit-linked investments in comparison to total

assets

Based upon the Solvency I and Solvency II (S.02.01) historical information, the evolution

of the index-linked and unit-linked investments in comparison to total assets of Slovakia is

compared to the EU. The break in Graph 4 shows the transition from the Solvency I to the

Solvency II regulatory framework. Under Solvency II assets are presented based upon their

market value.

Graph 4 - Evolution index-linked and unit-linked investments based upon Solvency I and Solvency II


As shown in Graph 4, the share of index-linked and unit-linked investments in comparison

to total assets increases heavily as from 2008. Note that the graph for the EU shows a

relatively stable behaviour over the observation period, with a slightly increasing trend as

from 2011.

0,0%

2,5%

5,0%

7,5%

10,0%

12,5%

15,0%

17,5%

20,0%

22,5%

25,0%

27,5%

30,0%

32,5%

35,0%

37,5%

40,0%

42,5%

45,0%

47,5%

50,0%

0

125

250

375

500

625

750

875

1 000

1 125

1 250

1 375

1 500

1 625

1 750

1 875

2 000

2 125

2 250

2 375

2 500

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 SII 2016 2017

Index-l

inked a

nd u

nit

-lin

ked investm

ents

(%

of to

tal assets

)

Index-l

inked a

nd u

nit

-lin

ked investm

ents

(in

mio

EU

R)

Assets held for index-linked and unit-linked contracts (in mio EUR)

Assets held for index-linked and unit-linked contracts (in % of total assets) for SK

Assets held for index-linked and unit-linked contracts (in % of total assets) for EU



6.2 Solvency II – excluding index-linked and unit-linked investments

Based upon the Solvency II (S.02.01) quarterly data from 2016 Q3 until 2018 Q1, the

evolution of the different asset categories is depicted in Graph 5. Furthermore, the evolution

of the SCR ratio is shown over the seven quarters.

Graph 5 - Evolution Solvency II balance sheet (S.02.01) items (Total Investments, deposits,

cash and cash equivalents) and SCR ratio


The composition of the Slovakian insurers’ balance sheet has remained relatively stable

over the quarters since the introduction of Solvency II on 1 January 201610. This seems to

be confirmed by the fact that the most dominant assets classes such as Bonds, Collective

Investment Undertakings and Holdings in related undertakings (including participations) do

not suggest a clear trend whether it be downwards or upwards.

Bonds have constituted the major part of the Slovakian insurers’ balance sheet since the

introduction of Solvency II.

For Slovakia, the SCR ratio shows a decreasing trend as from 2016 Q4. Overall, this trend

has not resulted into significant changes in the asset allocation of the overall Slovakian

insurance market.

10 Day one reporting, 2016 Q1 and Q2 are not publicly available

120%

140%

160%

180%

200%

220%

240%

260%

280%

300%

320%

340%

360%

380%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1

Other investments

Cash and cash equivalents

Deposits

Property

Loans and mortgages

Bonds

Collective Investments Undertakings

Holdings in related undertakings,including participations

Equities - unlisted

Equities - listed

Ratio of Eligible own funds to SCR



6.3 Solvency I – excluding index-linked and unit-linked assets

Based upon the Solvency I yearly data from 2005 until 2015, the evolution of the different

investment asset categories is depicted in Graph 6. Furthermore, the evolution of the

solvency ratio is shown over the history.

Graph 6 - Evolution Solvency I balance sheet items (Total Investments, deposits, cash and cash

equivalents)

Source: EIOPA Solvency I statistics and Deloitte-CEPS analysis

Graph 6, which relates to Solvency I figures suggests the following observations. The

dominance of Bonds that we observed under the rules of Solvency II has been a

characteristic of the Slovakian insurers’ balance sheet for more than a decade.

100%

125%

150%

175%

200%

225%

250%

275%

300%

325%

350%

375%

400%

425%

450%

475%

500%

525%

550%

575%

600%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Other

Land and buildings

Deposits

Loans and mortgages

Debt securities and other fixed income

securities

Debt securities issued by and loans toaffiliated undertakings and undertakings

Investments in affiliated enterprises andparticipating interests

Shares in affiliated undertakings andparticipating interests

Shares and other variable-yield securities

and units in unit trusts

Available solvency margin /required solvency margin



6.4 European Central Bank – including index-linked and unit-linked assets

Graph 7 - Evolution ECB balance sheet items (asset categories)

Source: ECB Statistical Data Warehouse and Deloitte-CEPS analysis

Graph 7 relates to figures of investments by Slovakian Insurers since 2005 Q1 as reported

by the ECB. It can be observed that the dominance of bonds in the investments, which is

observed in Solvency I, and II (see graphs above) is confirmed as a long-standing

characteristic of Slovakian insurers. However, over the last years, there is an increasing

importance of the Non Money-Market Funds.

On the next page, the Equity asset classes are presented in a more detailed view.

Furthermore, the evolution of the listed shares (normalized to a start value of 100) of

Slovakia is plotted against the aggregated EU data.

We remark that these graphs include index-linked and unit-linked assets, which cannot be

individualized from the figures published by the ECB.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

1998

Q1

1999

Q1

2000

Q1

2001

Q1

2002

Q1

2003

Q1

2004

Q1

2005

Q1

2006

Q1

2007

Q1

2008

Q1

2009

Q1

2010

Q1

2011

Q1

2012

Q1

2013

Q1

2014

Q1

2015

Q1

2016

Q1

2017

Q1

2018

Q1

Other Accounts Receivable Payable

Insurance, Pension and Standardized GuaranteeSchemes

Financial Derivatives and Employee StockOptions

Currency and Deposits

Money-Market Funds

Loans

Debt Securities

Non Money-Market Funds

Other Equity

Unlisted Shares

Listed Shares



Graph 8 - Evolution ECB balance sheet items (equity categories)


Graph 9 - Evolution ECB balance sheet items (Unlisted Shares and Other Equity)


0,0%

0,5%

1,0%

1,5%

2,0%

2,5%

3,0%

3,5%

4,0%

4,5%

5,0%

5,5%

6,0%

6,5%

7,0%

7,5%

8,0%

8,5%

9,0%

9,5%

10,0%1998 Q

1

1999 Q

1

2000 Q

1

2001 Q

1

2002 Q

1

2003 Q

1

2004 Q

1

2005 Q

1

2006 Q

1

2007 Q

1

2008 Q

1

2009 Q

1

2010 Q

1

2011 Q

1

2012 Q

1

2013 Q

1

2014 Q

1

2015 Q

1

2016 Q

1

2017 Q

1

2018 Q

1

Other Equity

Unlisted Shares

Listed Shares

0,0%

0,5%

1,0%

1,5%

2,0%

2,5%

3,0%

3,5%

4,0%

4,5%

5,0%

5,5%

6,0%

6,5%

7,0%

7,5%

8,0%

8,5%

9,0%

9,5%

10,0%

1998 Q

1

1999 Q

1

2000 Q

1

2001 Q

1

2002 Q

1

2003 Q

1

2004 Q

1

2005 Q

1

2006 Q

1

2007 Q

1

2008 Q

1

2009 Q

1

2010 Q

1

2011 Q

1

2012 Q

1

2013 Q

1

2014 Q

1

2015 Q

1

2016 Q

1

2017 Q

1

2018 Q

1

Other Equity

Unlisted Shares



Graph 10 - Evolution ECB listed shares SK and EU (as index)


Graph 11 – Evolution ECB unlisted shares SK and EU (as index)

0

15

30

45

60

75

90

105

120

135

150

165

180

195

210

225

240

255

270

285

300

1998 Q

1

1999 Q

1

2000 Q

1

2001 Q

1

2002 Q

1

2003 Q

1

2004 Q

1

2005 Q

1

2006 Q

1

2007 Q

1

2008 Q

1

2009 Q

1

2010 Q

1

2011 Q

1

2012 Q

1

2013 Q

1

2014 Q

1

2015 Q

1

2016 Q

1

2017 Q

1

2018 Q

1

Listed shares (index) SK Listed shares (index) EU

0

30

60

90

120

150

180

210

240

270

300

330

360

390

420

450

480

510

540

570

600

1998 Q

1

1999 Q

1

2000 Q

1

2001 Q

1

2002 Q

1

2003 Q

1

2004 Q

1

2005 Q

1

2006 Q

1

2007 Q

1

2008 Q

1

2009 Q

1

2010 Q

1

2011 Q

1

2012 Q

1

2013 Q

1

2014 Q

1

2015 Q

1

2016 Q

1

2017 Q

1

2018 Q

1

Unlisted shares and other equity (index) SK Unlisted shares and other equity (index) EU



6.5 Trends in Equity Investments

This section provides a trend analysis of the equity investments of insurers in Slovakia

using the balance sheet data of the insurance sector from the ECB Statistical Data

Warehouse. Given the availability of the equity split in the ECB database, the analysis

focuses on investments in listed shares and investments in unlisted shares and other equity.

6.5.1 Listed Shares

In the analysis below, the listed shares of insurance corporations are plotted against the

total assets in the industry both in amounts and in indexed values. The aim of this

comparative analysis is to understand the evolution of listed shares in the overall insurance

market. Similarity of the growth patterns in the listed shares and total assets can be

considered as an indication of the extent to which the equity investments are driven by a

good (or bad) economic environment in the industry at a certain point in time. A

presentation of the variables only in amounts might dilute the magnitude of the growths

for countries with large assets because in such a representation, the listed shares will be

overstated. Therefore, we also plot each series as indexed to the initial point in their

available history.

In the next step, we focus on the relationship with the listed shares and stock market

indices. The ECB QSA balance sheet items are valued at market prices at the end of each

quarter. Therefore, it is plausible to assume that the changes in the stock prices are

reflected on the amounts held in listed shares. In order to remove this “price effect” from

the observed amounts of listed shares and approximate the “real” amounts held in shares,

we consider adjusting the observed amounts in listed shares. Even though we observe high

correlations with listed shares and several stock indices, since the exact destinations of the

portfolio invested in listed shares at each period is not observable, we build a

“Weighted Equity Index” similar to the EIOPA Equity Dampener.

Amounts invested in listed shares and the total amount of assets of the insurance sector

are plotted in Graph 12 while the indexed values of the series are presented in Graph 13.

For the period of 2004 Q2 – 2012 Q4, we do not observe investments in listed shares. The

first investments are observed in 2013 Q1 with a value of 2 mio EUR, and after this period,

there is an upward trend in listed shares. Investments in listed shares increase to 4 mii

EUR in 2018 Q1.

On the indexed values of total assets and investments in listed shares, differences in the

growth pattern of these two series can be better observed. Over the period of 2004 – 2018,

indexed value of total assets increases by 262%, while indexed value of listed shares

increase by 120% of their initial starting value.



Graph 12 - Evolution of Listed Shares and Total Assets (in Mio EUR)


Graph 13 - Evolution of Listed Shares and Total Assets (indexed values)


Graph 14 presents the indexed values of the amounts invested in listed shares against its

Weighted Equity Index adjusted counterpart. Overall, we observe that the adjustment for

the stock market growth pushes the amounts invested in listed shares down. This in turn

points to a market price effect being present for the investments in listed shares.

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,51998 Q

1

1999 Q

1

2000 Q

1

2001 Q

1

2002 Q

1

2003 Q

1

2004 Q

1

2005 Q

1

2006 Q

1

2007 Q

1

2008 Q

1

2009 Q

1

2010 Q

1

2011 Q

1

2012 Q

1

2013 Q

1

2014 Q

1

2015 Q

1

2016 Q

1

2017 Q

1

2018 Q

1

Tota

l Assets

, M

io E

UR

Lis

ted S

hare

s,M

io E

UR

Listed Shares Total Assets

0

50

100

150

200

250

300

350

400

1998 Q

1

1999 Q

1

2000 Q

1

2001 Q

1

2002 Q

1

2003 Q

1

2004 Q

1

2005 Q

1

2006 Q

1

2007 Q

1

2008 Q

1

2009 Q

1

2010 Q

1

2011 Q

1

2012 Q

1

2013 Q

1

2014 Q

1

2015 Q

1

2016 Q

1

2017 Q

1

2018 Q

1

Listed Shares - Indexed Total Assets - Indexed



Graph 14 - Evolution of Listed Shares – Indexed (Weighted Equity Index Adjusted)


6.5.2 Unlisted Shares

Graph 15 depicts the amounts invested in unlisted shares and other equity plotted against

the total assets in the insurance markets of while Graph 16 - Evolution of Unlisted Shares

and Other Equity (indexed values) presents the indexed values of the series for an easier

comparison of the movements in these two series. We observe that amounts invested in

unlisted shares and other equity are higher than the investments in listed shares. There is

an upward trend in the investments in unlisted shares and other equity until 2008 Q4 but

from this date onwards, we observe a decrease in the investments in this type of equity.

The growth patterns of total assets and unlisted shares and other equity can be compared

on the indexed amounts. Over the period 2004 – 2018, indexed value of total assets reach

362 while indexed value of unlisted shares and other equity increases to 238.

0

50

100

150

200

250

1998 Q

1

1999 Q

1

2000 Q

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2004 Q

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2005 Q

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2006 Q

1

2007 Q

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2008 Q

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2009 Q

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2010 Q

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2011 Q

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2012 Q

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2013 Q

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2014 Q

1

2015 Q

1

2016 Q

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2018 Q

1

Listed Shares - Indexed Listed Shares (Weighted Equity Index Adjusted) - Indexed



Graph 15 - Evolution of Total Unlisted Shares and Other Equity and Total Assets (in Mio EUR)


Graph 16 - Evolution of Unlisted Shares and Other Equity (indexed values)


0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

0

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100

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4001998 Q

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1999 Q

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2004 Q

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2005 Q

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2006 Q

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2007 Q

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Tota

l Assets

, M

io E

UR

Unliste

d S

hare

s a

nd O

ther

Equity, M

io E

UR

Unlisted Shares and Other Equity Total Assets

0

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600

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2017 Q

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2018 Q

1

Unlisted Shares and Other Equity - Indexed Total Assets - Indexed

Documents

Key characteristics of the insurance marketec.europa.eu/.../insurers-eu/factsheet-slovakia_en.pdfSLOVAKIA – Key characteristics of the insurance market April 2019 I 5 Based upon